Table of Contents
Billionaires often accumulate and increase their wealth by founding and owning stakes in multiple companies. This is because owning multiple businesses provides a consistent source of income and the potential for a sustained increase in profits and valuation.
By diversifying their investments across multiple companies, billionaires can reduce exposure to risk and increase the chances that at least one of their businesses will be successful. One example of a billionaire who has been successful at building a diverse portfolio of companies is Aliko Dangote.
Dangote is a Nigerian billionaire businessman and the founder and CEO of the Dangote Group, Africa’s most diversified manufacturing conglomerate.
The group operates in a variety of industries, including cement, sugar, salt, and fertilizers, through companies such as Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries.
The leading billionaire, who is worth $18.7 billion, has built his businesses through a combination of strategic acquisitions and organic growth, making him the richest man in Nigeria and Africa.
For example, he recognized the potential for growth in Nigeria’s cement industry and invested heavily in the construction of cement plants and distribution networks. He has also been able to effectively manage his operations while constantly innovating and adapting to market changes.
His top-performing assets, which account for the majority of his wealth, include an 86-percent stake in Dangote Cement Plc, Africa’s largest cement company, an interest in his recently launched fertilizer complex, Dangote Fertilizer Plant, and a 72.3-percent stake in Dangote Sugar Refinery.
These are his most valuable assets:
- Dangote Cement Plc
His stake in the cement company is worth $8.29 billion
The majority of Dangote’s fortune stems from his 86-percent stake in publicly traded Dangote Cement. With a total capacity of 51.55 million metric tonnes per year, the cement company is Africa’s largest cement producer.
At the time of writing, Dangote Cement shares were valued at N261 ($0.583), giving the leading cement manufacturer a market capitalization of N4.45 trillion ($10 billion). Dangote’s stake in the cement company is currently valued at $8.29 billion in the market.
- Dangote Fertilizer Plant
His stake in the fertilizer plant is worth $5.15 billion
Dangote derives a total of $5.15 billion from Dangote Fertilizer Plant, his fertilizer complex in Lagos, Nigeria.
As the continent’s largest granulated urea fertilizer complex, the $2.5-billion urea fertilizer plant was developed to meet Nigeria’s need for fertilizer, a critical component of establishing food sufficiency for Africa’s most populous country.
- Dangote Sugar Refinery Plc
His stake in the sugar business is worth $315 million
Dangote Sugar Refinery Plc, Nigeria’s largest household, and commercial sugar producer, is 72.3-percent owned by Dangote. The company expects to produce 1.5 million metric tonnes of locally grown sugarcane this year.
Shares in Dangote Sugar were trading at N16.05 ($0.0358) at the time of writing, 31 basis points higher than their opening price on the local bourse on Thursday, giving the company a N195 billion ($435.7 million) valuation.
Dangote’s stake in the sugar company is currently worth $315 million.
- NASCON Allied Industries Plc
His stake in the salt and seasoning business is worth $42 million
Dangote, the world’s richest Black person, owns 62.2 percent of Nigeria’s largest salt-processing company, NASCON Allied Industries Plc.
NASCON is a subsidiary of the Dangote Group. The company’s main activities include processing raw salt into refined, edible, and grade salt, as well as manufacturing seasoning products and vegetable oil.
Dangote’s 62.2-percent stake in the company is worth $42 million.
